POWERED BY MOMENTUM MEDIA
AustralianSuper reaping benefits of scale – Silk
The industry superannuation mega-fund AustralianSuper is reaping all the anticipated benefits of its huge scale and experiencing none of the potential downsides, according to its chief executive Ian Silk.
He said the most significant scale advantages for the fund related to its ability to command substantial cost reductions and greater flexibility from service providers.
At this stage, one of the most obvious benefits of the fund’s size has been with respect to insurance, with AustralianSuper’s signing with CommInsure delivering members benefit increases of between 10 per cent and 100 per cent.
Because of the fund’s scale, “They were able to sharpen the pencil more on price and to be more flexible in the design of the insurance”, Silk said.
Cost savings have also been realised on the administration side, with the cost per unit of printing the various member communications significantly reduced because of the large scale of the print run.
When asked if there were any disadvantages in the sheer size of AustralianSuper, Silk admitted that there probably were some, but they had not yet become apparent.
While the fund’s size has attracted intense scrutiny from the Australian Prudential Regulation Authority, Silk said no breaches of any kind were evident within its various prudential reporting and administration systems.
Recommended for you
The Super Members Council (SMC) has called for streamlined super reporting to cut costs, boost investment flows, and strengthen retirement outcomes.
AustralianSuper’s reliance on unlisted assets dragged on performance over the past year, as the rally in listed markets left funds more heavily weighted to equities outperforming their peers.
IFM Investors has urged for government-industry collaboration to accelerate projects, unlock capital, and deliver long-term returns for Australians.
With super funds turning increasingly to private credit to lift returns, experts have cautioned that the high-yield asset class carries hidden risks that are often misunderstood.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
